The Commerce Department today sent
draft legislation to Congress creating a central fund to reimburse federal
entities for the costs of relocating their operations when government spectrum
is reallocated through auction to commercial entities. The proposed legislation
would implement the mechanism set forth in the President's FY 2003 Budget
that streamlines the reimbursement process and directs agencies to seek
cost reimbursement from a central account funded by auction receipts instead
of from the auction winners themselves.

"To solve the spectrum management
puzzle, we need to put this critical piece into place," said Assistant
Secretary of Commerce Nancy J. Victory. "This legislation provides more
certainty for both federal and commercial entities, and it can significantly
accelerate the deployment and availability of advanced wireless services
to American consumers by streamlining the cost reimbursement and spectrum
clearing process."

If passed by Congress, the legislation
would take the place of the current law, which requires winning bidders
to negotiate directly with federal entities upon the close of an auction
and to pay the agencies directly for their relocation costs. The proposed
legislation is available on the NTIA Web site at: http://www.ntia.doc.gov/ntiahome/congress/2002/legistransmittal7232002.htm